Wal-Mart Stores Inc. WMT +0.11% has signed an agreement with the Shanghai government to establish a China e-commerce headquarters in the city, as part of its online strategy to gain a greater share of the country's burgeoning retail market.
The move, which took place on Monday, came after the U.S. hypermarket operator announced a plan to buy a minority stake in major Chinese online retailer Yihaodian for an undisclosed sum last month.
"The scale of online sales in China is expanding rapidly and is projected to match U.S. online sales in the next few years," Wan Ling Martello, Wal-Mart's Executive Vice President of Global e-Commerce said in a statement.
"We look forward to offering Chinese consumers a wider selection of quality products at good value with a great online shopping experience."
Wal-Mart is relying on emerging markets, including China, Mexico and Brazil, for future growth as U.S. sales slow. However, the company has battled a number of challenges in the world's fastest growing economy, including losing three top China executives in the last month.
The company's China sales totaled $7.5 billion last year, accounting for just 2% of its $420 billion in global revenue. It operates more than 330 stores in China and had a 5% market share of megastore sales in 2010, while regional chains and mom-and-pop shops accounted for 73%, according to consulting firm Monitor Group.
Meanwhile, Wal-Mart spokeswoman Christina Lee Tuesday denied reports that Wal-Mart was in discussions regarding a deal to lead a consortium to invest $500 million in Beijing Jingdong Century Trading Co, the owner of China's Amazon.com-style retailer 360buy.com.
"We do not hold any investments in 360buy.com, nor did we ever," Lee said.
The move, which took place on Monday, came after the U.S. hypermarket operator announced a plan to buy a minority stake in major Chinese online retailer Yihaodian for an undisclosed sum last month.
"The scale of online sales in China is expanding rapidly and is projected to match U.S. online sales in the next few years," Wan Ling Martello, Wal-Mart's Executive Vice President of Global e-Commerce said in a statement.
"We look forward to offering Chinese consumers a wider selection of quality products at good value with a great online shopping experience."
Wal-Mart is relying on emerging markets, including China, Mexico and Brazil, for future growth as U.S. sales slow. However, the company has battled a number of challenges in the world's fastest growing economy, including losing three top China executives in the last month.
Meanwhile, Wal-Mart spokeswoman Christina Lee Tuesday denied reports that Wal-Mart was in discussions regarding a deal to lead a consortium to invest $500 million in Beijing Jingdong Century Trading Co, the owner of China's Amazon.com-style retailer 360buy.com.
"We do not hold any investments in 360buy.com, nor did we ever," Lee said.
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